SAN FRANCISCO--(BUSINESS WIRE)--Investors seeking an easy-to-understand, low-cost retirement funding
option that can generate guaranteed income for life can now consider the
new Schwab Retirement Income Variable Annuity (SRIVA), Charles
Schwab announced today.

The new Schwab Retirement Income Variable Annuity, featuring an optional
guaranteed lifetime withdrawal benefit (GLWB), was developed for
investors seeking a low-cost, easy-to-understand variable annuity that
offers a guaranteed income stream, investment diversification, and
professional guidance. SRIVA’s guarantees are backed by Pacific Life,
one of America’s leading insurance providers.

Investors who select the SRIVA with the GLWB option are purchasing
additional protection to ensure a minimum level of income for life,
regardless of how the markets perform. With the GLWB, the income stream
is protected in the event of a market downturn, even if the underlying
portfolio value of the variable annuity drops to zero.

“For many investors, knowing the amount of money that is reliably being
generated every month - regardless of the market’s impact - is
invaluable,” says Tina Valenzuela, vice president of insurance services
at Charles Schwab. “Variable annuities can be a great fit for addressing
these concerns. Unfortunately, many annuities with a GLWB can be
complicated and expensive. We’re thrilled that we’re able to offer a
variable annuity with an income guarantee option that is understandable,
flexible and accessible.”

Guaranteed income. In addition to annuitization, the optional
GLWB rider allows an investor to secure an annual lifetime income
stream equal to five percent of a protected payment base that locks in
the highest contract anniversary value achieved since purchase of the
rider.

Pricing. The base fee is 60 basis points – less than half of
the industry average of 134 basis points, according to Morningstar1
– and each of the underlying portfolios has an investment
expense ratio of 80 basis points. The GLWB rider can be added at any
time until age 85 for 80 basis points, or for 100 basis points for a
joint GLWB. There are no hidden charges or surrender fees.

Investments and access. Schwab clients have three simple
portfolios to choose from – balanced, balanced with growth and growth
– each is broadly diversified and professionally managed by Charles
Schwab Investment Management, Inc. If an investor’s needs change over
time, he or she can transfer among these three investment choices,
tax-free. With the GLWB option, investors can also access their
annuity assets and withdraw them for emergencies or unexpected expenses2,
even while they are taking lifetime income (investors should be aware
that the GWLB is not a contract value and is not available for
withdrawal like a cash value and that their actual contract value and
death benefit will deplete with each withdrawal).

Professional guidance. By sitting down with any of Schwab’s
1200+ financial consultants to talk about their retirement planning
options, investors get tailored advice and professional help in
determining whether the SRIVA or other annuity options are right for
their retirement income needs.

When it Comes to Annuities, Confusion Reigns

Although Schwab’s latest retirement survey found that a majority of
Americans (84 percent) want their savings to produce a steady stream of
income in retirement, most investors don’t understand that annuities can
be a solution. Valenzuela points out that the survey found that close to
half (44 percent) of Americans grade themselves a ‘D’ or ‘F’ on their
annuities awareness.

Half of Americans say they don’t understand what an annuity is and
seventeen percent say their initial reaction to the word “annuity” is
“complicated.” There’s also an uncertainty about who to turn to for
advice on the product, although survey respondents said they are most
likely to turn to a financial advisor or planner (34 percent) for more
information on annuities.

“The instrumental role that annuities can play in a retirement income
portfolio makes it essential for investors to better understand how they
potentially fit into their investment plans,” notes Valenzuela. “Our
survey shows that most investors lack a basic understanding of annuities
and that more education is needed.”

The Schwab Retirement Income Variable Annuity is available through
Schwab branches
nationwide. Additional information about the Schwab Retirement
Income Variable Annuity is available at schwab.com/annuities
or by calling (888) 311-4889. For clear and actionable guidance on how
to plan an overall income generation strategy that fits your retirement
goals, Schwab has nine Retirement
Income Fundamentals that help ease the transition from saving for
retirement to spending in retirement available at www.schwab.com/incomefundamentals.

About the Survey

The Charles Schwab Retirement Survey was conducted by Koski Research
between January 3 and 7, 2013, using Random Digit Dialing of listed and
unlisted numbers, with 20 percent of the sample reached by
cellular/mobile phones. Quotas are set to ensure reliable and accurate
representation of the entire U.S. population ages 18 and over. Results
of any sample are subject to sampling variation. The magnitude of the
variation is measurable and is affected by the number of interviews and
the level of the percentages expressing the results.The study’s
margin of error is +/- 3.1 percent.

About Charles Schwab

The Charles Schwab Corporation (NYSE:SCHW) is a leading provider of
financial services, with more than 300 offices and 8.8 million active
brokerage accounts, 1.6 million corporate retirement plan participants,
865,000 banking accounts, and $1.95 trillion in client assets as of
December 31, 2012. The company was ranked ‘Highest in Investor
Satisfaction With Self-Directed Services’ in the 2012 US Self-Directed
Investor Satisfaction StudySM from J.D Power and Associates.
Through its operating subsidiaries, the company provides a full range of
securities brokerage, banking, money management and financial advisory
services to individual investors and independent investment advisors.
Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,
www.sipc.org),
and affiliates offer a complete range of investment services and
products including an extensive selection of mutual funds; financial
planning and investment advice; retirement plan and equity compensation
plan services; compliance and trade monitoring solutions; referrals to
independent fee-based investment advisors; and custodial, operational
and trading support for independent, fee-based investment advisors
through its Advisor Services division. Its banking subsidiary, Charles
Schwab Bank (member FDIC and an Equal Housing Lender), provides trust
and custody services, banking and lending services and products.
Investment products offered by Charles Schwab & Co., Inc. are not
insured by the FDIC, are not deposits or obligations of Charles Schwab
Bank, and are subject to investment risk, including the possible loss of
principal invested. More information is available at www.schwab.com
and www.aboutschwab.com.
(0213-1179)

Variable annuities are sold by prospectus only. Before purchasing a
variable annuity, you should carefully read the prospectus and consider
all risks, charges and expenses associated with the annuity, its
investment objective and its investment options. You can request a
prospectus by calling 1-888-311-4887 or by visiting www.schwab.com/annuity.

The contract value of a variable annuity may be more or less than the
premiums paid and it is possible to lose money.

All guarantees under the Schwab Retirement Income Variable Annuity
are subject to the financial health and claims-paying ability of Pacific
Life, not Schwab.

The Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional rider
available for an additional cost. The protected payment base is not a
contract value and is not available for withdrawal like a cash value.
Your actual contract value and death benefit will deplete with each
withdrawal, though you may continue to withdraw the specified annual
protected amount for life, even after the account value has been
depleted to zero. Withdrawals in excess of the annual protected payment
amount may permanently reduce the protected payment base.

Variable annuities are long-term investment vehicles designed for
retirement purposes and offer tax deferral on potential growth; however,
withdrawals prior to age 59½ may be subject to a 10% Federal tax penalty
in addition to applicable income taxes. Variable annuities are also
subject to anumber of fees including mortality and risk expense
charges, administrative fees, premium taxes, investment management fees,
and charges for additional optional features. Although there are no
surrender charges on the variable annuities offered by Schwab, such
charges do apply in the early years of many contracts

The Schwab Retirement Income Variable annuity is issued by Pacific Life
Insurance Company in all states except New York and in New York by
Pacific Life & Annuity Company. The contracts are sold exclusively by
Charles Schwab & Co., Inc. (“Schwab”) through its representatives
including both employees and independent contractors and their employees
(“Schwab Financial Consultants”). Charles Schwab Investment Management,
Inc. (CSIM) is the adviser for the underlying investment options.
Charles Schwab & Co., Inc. and Charles Schwab Investment Management,
Inc. are separate but affiliated companies and subsidiaries of The
Charles Schwab Corporation and are not affiliated with Pacific Life
Insurance Company or Pacific Life and Pacific Life & Annuity Company.

The Schwab Center for Financial Research is a division of Charles Schwab
& Co., Inc.

1 Source: 1.34% industry average base annuity fee according
to a December 31, 2012 Morningstar survey of 1,925 variable annuities.
This does not include fees associated with the optional guaranteed
lifetime withdrawal benefit or underlying investment options.

2 Tax penalties may apply prior to age 59 1/2 and withdrawals
in excess of the protected payment amount may significantly and
permanently reduce your future income